Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

While in the manic depressive stage of mental illness, Alec ordered 20,000 paper bags, believing that he could sell them to small supermarkets as an

image text in transcribed
While in the manic depressive stage of mental illness, Alec ordered 20,000 paper bags, believing that he could sell them to small supermarkets as an ecologically sound marketing device. His doctor then placed him back on his medication, and he was upset to realize what he had done. Trying to make the best of a bad job, he contacted a number of small supermarkets, but they were not interested Recalling his business school law course, he called the paper bag supplier and cancelled the contract on the grounds that he lacked capacity when he made it Alec is bound to the contract because he affirmed it by trying to sell the bags when he became unimpaired, instead of promptly repudiating the contract Since this is a contract for necessaries, he is bound to it even though he was mentally impaired when he entered into it Since this is not a contract for necessaries, Alee is nor bound to it, provided he repudiated it promptly. Alec's reasonable attempts to resolve the problems caused by his making the contract when he was impaired should not affect him negatively now Cand D

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Risk Alert Employee Benefit Plans Industry Developments 2019

Authors: AICPA

1st Edition

1948306867, 978-1948306867

More Books

Students also viewed these Accounting questions